Question

Hi can someone assist please the entries in red are wrong

FULL SCREEN PRINTER VERSSON BACK Additional Problem 4 Your answer is partially correct. Try again. On January 1, 2017, Pearl Corporation purchased 20% of the outstanding voting shares in wLT Corporation for $1,280,000. At the time of purchase, WLT's net assets were undervalued by $83,520 and had a remaining useful life of 12 years. Both companies had a December 31 year-end. At the end of 2017, WLT reported a net income of $343,000. Also on December 31, 2017, the fair value of the investment in WLT shares was 1,403,000. On January 10, 2018, WLT paid a cash dividend. Pearl's ownership entitles it to $40,000 of the dividend. Prepare the journal entries on the books of Pearl Corporation to record the transactions described above, assuming that the 20% interest in wLT does represent significant influence. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Credi Cash 12 Dec. 31, 2017 686 40000 Jan, 10, 2018Bond Investment at Amertized Cost 6960 Investment Income or Loss SHOW LIST Question Attempts: 1 o' 4 used sAverom ure.

Answer 1

Journal Entry
Date	Account Tittle	Debit	Credit
Dec, 31, 2017	Amortization Expense (83520/12)*20%	$1,392
	Investment in Associates		$1,392
Jan,10, 2018	Investment in Associates	40000
	Cash		40000